Hi-media, the online media group, has announced the acquisition of AdLINK Media, the display advertising network of AdLINK Internet Media.
With the acquisition, Hi-media hopes that it will be in a position to offer global coverage for internet users in Europe; enhance its activities in Germany; expand into the Netherlands, Italy and the UK; strengthen its entertainment, women’s, automotive and B2B verticals.
Cyril Zimmermann, founder and CEO of Hi-media, said: With the acquisition of AdLINK Media, Hi-media becomes one of the major players in the European online advertising network market.
Also, this combination is reportedly expected to generate cost synergies of about E5m for the combined entity.
According to Hi-media, at the end of this transaction, AdLINK Internet Media will become a major shareholder in Hi-media Group with a 10.7% stake in the capital, along with IDI and BV capital. AdLINK will concentrate operationally on its domain name marketing activities (SEDO) and affiliate marketing (Affilinet).
The operation, which will be valid only if the reorganisation is completed (i.e. gathering all media entities under the same entity), will be effective no later than end of August 2009.
AdLINK Media is valued at E29.4m and will be transferred to Hi-media net of cash and of all debt.
